Product Analysis of Dell Essay Example

which cater to the productivity and entertainment needs of small businesses as well as home users. Dell's XPS notebooks and desktops are designed specifically for gamers to provide them with a high-end multimedia and gaming environment.DELL’s product mix decisions are aligned with their unique image and market position, particularly concerning the number of categories they offer to the marketplace. DELL provides various product categories including desktop PCs, notebook systems, servers, printers, and a variety of software and peripheral products. Compared to its competitors, DELL has superior product depth and product line length. By utilizing different brands, DELL effectively competes in the market and targets different consumer groups. For business and institutional customers, they offer the OptiPlex brand of desktop computers, while the Latitude brand mobile computers are available for professionals who prefer to work anywhere. The Dell Precision brand workstations run highly complex applications necessary for a successful business. For everyday consumers, they provide the Inspiron brand mobile computers and Dimension brand desktops with UltraSharp flat panel monitors. DELL has also introduced notebook and desktop computers tailored for gaming enthusiasts under the XPS brand. DELL claims to provide reliable, efficient services in a repeatable and predictable manner.Dell has developed multiple suites to assist consumers in selecting the appropriate service they require. The company's seven service suites, including Assessment Design and Implementation, Deployment Services, Asset Recovery and Recycling, Training, Enterprise Support, Client Support, and Managed Lifecycle services aims to differentiate Dell from competitors and improve customer satisfaction. Dell has effectively organized its services into seven suites that cater to different market segments. When analyzing products and services, factors such as their position on the product/service life-cycle,

their advantages compared to their competition, and their benefits to different decision-makers should be considered. In the PC industry, short life-cycles lead to products and services transitioning quickly through life cycle stages, spending the most time in the declining stage.The rapid growth of the IT industry and continuous release of new technologies have led companies to regularly lower prices of PC and Non-PC products to remain competitive in the market. This pricing strategy benefits consumers by providing fast, reliable, and useful products and services. Furthermore, it gives manufacturers of Non-PC products an outlet to market their products.

Dell, for example, made $18.2 billion in revenue with a net profit margin of 8%, and in 2006, their revenue was almost tripled to $55.9 billion, with a lower net profit margin of 6.4%. Dell's unique selling strategy of eliminating the middleman has enabled them to keep their profit margins high while keeping costs low. Essentially, they have few costs and more profit per unit sold.

To secure the success of products and companies, marketers are aware of the four main P's - product, price, place, and promotion.In order to maintain its market share, the placement strategy of companies like Dell is crucial. Dell has effectively increased its market share by implementing a distribution channel that sells computer systems directly to customers, eliminating the need for other channels. This approach has enabled Dell to act as both manufacturer and retailer and has contributed to its success in streamlining its distribution channel and overtaking competitors. With its main factory located in Texas and regional headquarters located in Tennessee and Brazil, Dell ensures that it can provide timely and efficient

service to customers by centralizing its operations. By expanding its operations in middle Tennessee, Dell was able to reach 70% of its customer base within twenty-four hours by ground, thanks to the transportation infrastructure. The company's focus on speed has been instrumental in the success of its distribution strategy, allowing it to meet its customers' demands speedily via the Internet and phone channels. Suppliers have attributed Dell's success to this emphasis on speed.Dell's distribution strategy has a disadvantage where any problem in the supply chain or with suppliers can hinder its ability to satisfy its customers. This is because Dell does not keep inventory and heavily relies on its suppliers. Although Dell's main strategy is to integrate manufacturing, supply, and sales into one working system, a component failure can significantly affect the entire system as all components are interconnected. However, having one working system benefits Dell as productivity increases with faster communication and information flow. By eliminating middlemen, Dell purchases from suppliers and directly delivers the final product to customers, thus avoiding unnecessary time and cost. Dell's mass customization method widens its coverage while narrow it down for each customer to order their desired specification of a computer. Utilizing the internet network channel, Dell has a broad coverage where almost everyone can place an order for its specialized/customized PCs, but it also has a narrow coverage targeting specific customers.Dell has maintained its market position through continuous research and refinement of their strategy, particularly their build-to-order approach. By reducing inventory costs and avoiding retailers, they are able to offer cheaper prices to consumers. This approach became popular in the mid-1990s when PC sales were increasing globally.

Dell's efficient distribution strategy has given them an advantage in communication, information management and supply chain management. However, Dell's recent foray into retail sales has caused them to lose their value proposition.

The computer has transformed our lifestyles. Our project findings have revealed that each company possesses a distinct approach for managing its various facets, which extends beyond what we perceive from their in-store appearances and TV commercials. Despite competing for business, each company strives to differentiate itself from others and operate in a way that benefits them the most. As a result, they can earn profits and establish a reputable brand for their company.